EUSTX50 and Deutsche Bank charts
US market shows risk aversion to financial sectors since the last 5 days. In addition, Deutsche Bank stock is at all time low while the EUROSTOXX 50 index is printing a potential reversal.
- The channel is what we are interested in.
- The channel defines Eurostoxx 50 price action YTD i.e. channel bound, in the red for the year, pointed downwards.
- Price now printing potential head and shoulders pattern, resisted by top of channel.
- Maybe there is a reason for Eurostoxx 50’s current predicament maybe not but Deutsche Bank does not look pretty at all.
- Recall that DB is according to IMF, the biggest contributor to systemic risks to the world’s financial market.
- DB stock price is now at all-time-low.
- So low that it’s CEO is being made fun of.
— Scott Burke (@ScottBurke) September 26, 2016
Aversion to financials showing up
- How to make use of this tool by Sector Select SPDR explained in this post.